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You own a bond that has a 7% coupon rate and matures in 12 years. You purchased this bond at par when it was originally
You own a bond that has a 7% coupon rate and matures in 12 years. You purchased this bond at par when it was originally issued. If the current market interest rate for this type of bond is 7.5% then you would expect: To realize a loss if you sold the bond today at the market price The current yield to be less than 7% Today's market price to exceed the face value of the bond The bond issuer to increase the amount of each interest payment on these bonds Suppose a 5-year bond with semi-annual coupons is currently trading for $1,750. The bond has an yield to maturity of 12%, and its face value is $1,500. The coupon rate for this bond is: 16.62% 10.21% 32.28% 16.53% JP Morgan Chase has a 6% coupon bond that matures in 11 years. The bonds pays interest quarterly. If the face value of the bond is $5,000 and the yield to maturity on the bond s 12.90%, then the price of the bond is: $2,987.3317 $3.029.6193 $7,763.5037 $7,720.9717
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